If an Eladrin can move 6 squares in a move action or he/she can use Fey Step to teleport 5 squares, which is also one move action, what is the difference? If both count as one move action and either one takes your full turn during combat, is there really any benefit to teleporting 5 squares during combat instead of moving 6 squares? Or is Fey Step really only useful for teleporting into a locked area or an elevated position (like teleporting into a tree)?

I don't understand what you mean about "takes your full turn during combat" You get a move, a minor, and a standard, moving at most takes your entire move action...
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wax eagle♦Jul 10 '12 at 19:59

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Is the Eladrin mentioned using a "double move", or was this just mistyped? In a contest of maximum distance traveled (only distance, no obstacles), regular move is superior in most cases. Teleport, as you may see in the answers below, is superior for avoiding obstacles in a contest of maximum distance with obstacles, allowing you to choose where you end up.
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B.A. ThomasJul 10 '12 at 20:30

While a creature is grabbed, it is immobilized. Maintaining this condition on the creature occupies whatever appendage, object, or effect the grabber used to initiate the grab. This condition ends immediately on the creature if the grabber is subjected to an effect that prevents it from taking actions, or if the creature ends up outside the range of the grabbing power or effect.

Immobilization does not restricted teleportation, and it is therefore a useful way to end up "outside the range of the grabbing power."

You can use teleport to trigger a number of powers (particularly warlock ones).

Some of the down sides:

You can't teleport around a corner in a single action.

Teleportation is usually more "expensive" than regular movement. It either doesn't let you move as far, or requires the expenditure of a power.

Another upside, in addition to moving past blocking enemies, is you can teleport to anywhere you have line of sight that is within range. So if a door has a keyhole, or you have a scrying sensor on the other side (such as Wizard's Sight), or there are gaps between the bars of a cage, or you are using a Crook-eye to peer around a corner....it is very hard to stop an enterprising teleporter from getting somewhere he wants to be.
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AnanisaptaJul 11 '12 at 0:57

Teleportion is a special form of movement, useful for travelling without movement.

There are two major benefits to teleportation. You can situate yourself in any square in range without provoking opportunity attacks (verry nice for getting at the "back line" of monsters, and you can escape grabs and some forms of immobilized and restrained.

These benefits are not useful all of the time, but they will generally come in handy at least once an encounter, depending on the nature of the space that you're playing in. It is also useful for movement in the z-axis of the game, presuming your DM has prepared for that eventuality.

At higher levels, there are builds that focus on teleport optimization to have virtually unrestricted movement around the battlefield. But in general, the Fey Step racial power is considered quite nice relative to some of the other racials out there.

Teleportation allows you to move when you are restricted via immobilized and a veritable host of other effects.

In situations where your move action is going to be hindered by immobilization, barriers where you can trace line-of-effect your destination, or you want to travel in a direction other than horizontally (provided lack of ceiling), Teleportation is great.

Considering that turns are broken down into your main, minor, and move I personally have trouble opting out of teleporting the same distance in combat when available.

The only flaw I can find with Teleportation is you stay prone when you teleport.

Actually, if you teleport up into the air voluntarily and are trained in acrobatics, you can teleport standing from prone... or take falling damage.
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Brian Ballsun-StantonJul 10 '12 at 19:59

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Point remains. You have to use an Acrobatics Check or otherwise spend some sort of move action to fix prone. Teleportation alone does not resolve the Prone status. "If a creature is prone when it teleports, is it still prone when it reaches the destination space? The answer is yes. Teleportation does not set a prone creature upright. The principle behind this rule is that effects are not terminated by teleportation unless those effects are bound to the space that a teleporting creature leaves. This principle is why you can teleport out of restraints to end an immobilizing effect."
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B.A. ThomasJul 10 '12 at 20:08

Thanks to all. New to 4e and haven't played, but choosing my first race/class now. What I was a little confused about, is if an Eldarin Archery Ranger runs away from a melee attack (that was already upon the Ranger) how would Fey Step be superior to simply turning and running? If I understand the answers above, running is about the same if movement is unrestricted, but Fey Step is superior if moving past an enemy, up a tree, or if an opponent has a hold on you...is that correct? Also do both take your entire "move" action? I don't entirely understand types/order of actions yet...
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mucrew35Jul 10 '12 at 21:52